Question 1

Alduro Asia Chemicals,a manufacturer of detergents,delivers chemicals used for commercial washing to various hoteliers in Asia.Most of the company's revenue comes from routine orders from its existing customers and the company uses unskilled salespeople to collect requirements from its customers.These unskilled customers are known as ________.
A)demand creators
B)deliverers
C)missionaries
D)order takers
E)solution vendors

Accepted Answer

The unskilled salespeople who collect routine orders from existing customers are known as "order takers". They are not involved in creating new demand or promoting the company's products to potential customers, but rather focus on fulfilling existing orders from current customers.

Question 2

What are the five main challenges associated with database marketing?

Accepted Answer

The five main challenges associated with database marketing include:
1.Some situations are just not conducive to database marketing.Building a customer database may not be worthwhile when: (1)the product is a once-in-a-lifetime purchase (a grand piano); (2)customers show little loyalty to a brand (there is a lot of customer churn); (3)the unit sale is very small (a candy bar)so customer lifetime value is low; (4)the cost of gathering information is too high;and (5)there is no direct contact between the seller and ultimate buyer.
2.Building and maintaining a customer database require a large investment.Computer hardware,database software,analytical programs,communication links,and skilled staff can be costly.It's difficult to collect the right data,especially to capture all the occasions of company interaction with individual customers.Sometimes companies mistakenly concentrate on customer contact processes without making corresponding changes in internal structures and systems.
3.Employees may resist becoming customer-oriented and using the available information.Employees find it far easier to carry on traditional transaction marketing than to practice CRM.Effective database marketing requires managing and training employees as well as dealers and suppliers.
4.Not all customers want a relationship with the company.Some may resent knowing the company has collected that much personal information about them.Online companies should explain their privacy policies and give consumers the right not to have their information stored.European countries do not look favorably on database marketing and are protective of consumers' private information.The European Union passed a law handicapping the growth of database marketing in its 27 member countries.
5.The assumptions behind CRM may not always hold true.High-volume customers often know their value to a company and can leverage it to extract premium service and/or price discounts,so it may not cost the firm less to serve them.Loyal customers may also be jealous of attention lavished on other customers.Loyal customers also may not necessarily be the best ambassadors for the brand.One study found those who scored high on behavioral loyalty and bought a lot of a company's products were less active word-of-mouth marketers than customers who scored high on attitudinal loyalty and expressed greater commitment to the firm.

Question 3

Which of the following is a major advantage of using direct mails?
A)Direct mails permit target market selectivity.
B)It is the best suited tool for selling complex products.
C)Campaign testing is not needed for direct mails.
D)Direct mails have very high conversion rates.
E)It is the best method to sell industrial products.

Accepted Answer

Direct mails allow for selectivity in targeting specific groups of consumers, which can increase the effectiveness of the marketing campaign. While direct mails can be effective in selling complex products or industrial products, this is not a major advantage compared to the ability to target a specific audience. Campaign testing is still important for direct mails to ensure the message resonates with the target audience. Conversion rates for direct mails vary and can be influenced by numerous factors, so they are not necessarily higher than other marketing methods.

Question 4

Which of the following is a disadvantage of direct marketing?
A)invasion of privacy
B)inability to build brand awareness
C)low chances of customers avoiding messages
D)inability to control marketing communication
E)inability to maintain information security

Accepted Answer

Direct marketing can sometimes be seen as intrusive by consumers, leading to concerns about invasion of privacy.

Question 5

In outbound telemarketing,the call center employees ________.
A)sell high-involvement products
B)initiate calls from a location closer to prospects
C)offer huge discounts to customers
D)initiate calls to prospects and customers
E)answer the queries of consumers who call for information

Accepted Answer

In outbound telemarketing, the call center employees initiate calls to prospects and customers to promote and sell products or services. The other options mentioned such as selling high-involvement products or offering huge discounts may be strategies used within outbound telemarketing, but they are not defining characteristics of the practice. Answer E refers to inbound telemarketing, which is a different form of telemarketing where employees answer calls from customers seeking information.

Question 6

The original and oldest form of direct marketing are ________.
A)billboards
B)banner advertising
C)mail campaigns
D)outbound telemarketing calls
E)field sales calls

Accepted Answer

The answer of The original and oldest form of direct...

Question 7

A salesperson sends e-mails to persuade prospects to buy the products of his company.This is a type of ________ marketing.
A)buzz
B)virtual
C)word of mouth
D)direct
E)viral

Accepted Answer

Direct marketing involves communicating directly with potential customers to promote a product or service. This can include activities such as email marketing, telemarketing, and direct mail. The salesperson sending emails to prospects would fall under this category. Buzz marketing involves creating excitement or discussion around a particular product or brand. Virtual marketing relates to online efforts such as advertising or social media. Word of mouth marketing involves promoting a product through word of mouth recommendations from satisfied customers. Viral marketing involves creating a video, advertisement, or other piece of content that becomes widely shared or talked about online.

Question 8

In general,what are the five ways companies use database marketing?

Accepted Answer

The answer of In general,what are the five ways companies...

Question 9

The Internet provides marketers and consumers with opportunities for much greater interaction and ________ than other marketing channels.
A)control
B)data security
C)high involvement selling
D)order conversion
E)individualization

Accepted Answer

The Internet allows for personalized and individualized interactions between marketers and consumers, which is not always possible through other marketing channels.

Question 10

Which of the following is a factor considered when a customer is evaluated based on RFM formula?
A)the amount of time has passed since the customer's last purchase
B)the product categories purchased by the customer
C)the mode of payment used by the customer
D)the location from which the customer has bought goods
E)the type of feedback provided by the customer

Accepted Answer

RFM formula (Recency, Frequency, Monetary) considers the recency of the customer's last purchase as one of the factors. The amount of time that has passed since the customer's last purchase is a measure of the recency factor in the RFM model.

Question 11

The management of Raleigh Bicycles observes that the company's selling costs are affected by the increased number of visits that the salespeople make to meet dealers.The company decides to reduce its personal selling costs by making sales calls to dealers via the telephone.This marketing strategy used by Raleigh is an example of ________.
A)inbound telemarketing
B)search marketing
C)internal marketing
D)outbound telemarketing
E)paid-search marketing

Accepted Answer

The marketing strategy used by Raleigh Bicycles is outbound telemarketing, which involves salespeople contacting potential customers by phone rather than in person. This is a way to reduce personal selling costs by providing the same service without the expense of travel and other associated costs.

Question 12

Market demassification has resulted in ________.
A)niche market creation
B)product standardization
C)mass production practices
D)intrinsic marketing channels
E)just-in time production

Accepted Answer

Market demassification refers to the fragmentation of large mass markets into smaller, more specialized markets or niches. This results in the creation of niche markets, which cater to the specific needs and preferences of a smaller group of consumers.

Question 13

Increased credit card penetration,especially in China and Korea,has also fueled ________________.
A)viral marketing
B)objective screening
C)internal targeting
D)direct marketing
E)RFM formula targeting

Accepted Answer

Increased credit card penetration in China and Korea has led to a rise in direct marketing activities as credit card companies use targeted promotions to acquire new customers and increase usage of their cards.

Question 14

The practice of using call centers,where employees receive calls from customers and provide service by taking orders and answering queries,is called ________.
A)customer response marketing
B)guerilla marketing
C)rective marketing
D)internal marketing
E)inbound telemarketing

Accepted Answer

The practice described in the question is inbound telemarketing, where call center employees receive incoming calls from customers and provide service by taking orders and answering queries. Customer response marketing is a broader term that includes various marketing activities aimed at eliciting a response from customers, such as direct mail, email, or online ads. Guerilla marketing and rective marketing are not related to the practice described in the question. Internal marketing refers to activities aimed at motivating and engaging employees within an organization.

Question 15

OrdOnline,a pure click company offering online auctioning,decides to launch a promotional program to increase its sales.The company identifies customers who have made at least three purchases and spent at least $150 in the past six months and offers discount coupons to these customers.Which of the following strategies is used here for targeting the customers?
A)viral marketing
B)objective screening
C)internal targeting
D)catalog marketing
E)RFM targeting

Accepted Answer

The strategy used here to target customers is RFM (recency, frequency, monetary) targeting. The company has identified customers who have made at least three purchases (frequency) and spent at least $150 (monetary) in the past six months (recency). This approach is focused on identifying customers who have demonstrated the highest level of engagement with the brand and are likely to respond positively to the promotional program.

Question 16

A salesperson performing over the counter sales in a medical store can be referred to as a(n)________.
A)order taker
B)demand creator
C)solution vendor
D)phisher
E)missionary

Accepted Answer

An over the counter salesperson in a medical store is typically an order taker, as they are primarily responsible for processing customer orders and completing transactions. They may provide basic information about products, but their focus is on facilitating the sale rather than actively promoting or creating demand for products.

Question 17

_________ marketing is the use of customer-direct channel to reach and deliver goods and services to customers without using marketing middleman.
A)buzz
B)direct
C)virtual
D)word of mouth
E)interactive

Accepted Answer

Direct marketing involves companies reaching out to customers directly without using intermediaries such as retailers or wholesalers. This can include methods such as email marketing, direct mail, telemarketing, and targeted online advertising. By using direct marketing, companies can save on distribution costs and have more control over their marketing message.

Question 18

What situations are not conducive to database marketing?

Accepted Answer

The answer of What situations are not conducive to database...

Question 19

Database marketing is ideal when a company does not have direct contact with its customers.

Accepted Answer

Database marketing is most effective when a company has direct contact with its customers, as it involves collecting and analyzing customer data to create targeted marketing campaigns and personalized messaging.

Question 20

Which of the following is an element of an offer strategy?
A)the medium used for delivery
B)the number of customers in the locality
C)the vision of the company
D)the skills required for production
E)the details of customer order received

Accepted Answer

The medium used for delivery is an element of an offer strategy as it affects how the offer is communicated and received by the target audience. It could be through email, social media, direct mail, or other channels. The other options listed may be important considerations for a business, but they are not necessarily elements of the offer strategy.

Quiz 20: Managing Personal Communications: Direct and Database Marketing and Personal Selling

What are the five main challenges associated with database marketing?

Which of the following is a major advantage of using direct mails?

Which of the following is a disadvantage of direct marketing?

In outbound telemarketing,the call center employees ________.

The original and oldest form of direct marketing are ________.

A salesperson sends e-mails to persuade prospects to buy the products of his company.This is a type of ________ marketing.

In general,what are the five ways companies use database marketing?

The Internet provides marketers and consumers with opportunities for much greater interaction and ________ than other marketing channels.

Which of the following is a factor considered when a customer is evaluated based on RFM formula?

Market demassification has resulted in ________.

Increased credit card penetration,especially in China and Korea,has also fueled ________________.

The practice of using call centers,where employees receive calls from customers and provide service by taking orders and answering queries,is called ________.

A salesperson performing over the counter sales in a medical store can be referred to as a(n) ________.

_________ marketing is the use of customer-direct channel to reach and deliver goods and services to customers without using marketing middleman.

What situations are not conducive to database marketing?

Database marketing is ideal when a company does not have direct contact with its customers.

Which of the following is an element of an offer strategy?